Amended in Assembly April 1, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 261


Introduced by Assembly Member Chesbro

February 7, 2013


An act tobegin insert amend Section 1569.884 of, and toend insert add Section 1569.652 to the Health and Safety Code, relating to residential care facilities for the elderly.

LEGISLATIVE COUNSEL’S DIGEST

AB 261, as amended, Chesbro. Residential care facilities for the elderly: fees and charges.

Existing law provides for the licensure and regulation of residential care facilities for the elderly, as defined, by the State Department of Social Services, including, among other things, regulation of fees and charges. Existing law requires the admission agreement for a residential care facility for the elderly to contain specified elements. Under existing law, a violation of any of these provisions is punishable as a misdemeanor.

This bill would prohibit a residential care facility for the elderly from requiring advance notice for terminating an admission agreement upon the death of a resident,begin delete andend delete would prohibit the facility from assessing any fees once all personal property of the deceased isbegin delete removed.end deletebegin insert removed from the facility, and would prohibit the facility from impeding the removal of a deceased resident’s personal belongings, as specified. The bill would require a residential care facility for the elderly to issue a refund of any fees paid in advance, covering the time after a deceased resident’s belongings have been removed, within 15 days of those belongings being removed. The bill would also require a residential care facility for the elderly to, within 3 days of becoming aware of a resident’s death, provide written notice to specified persons of the facility’s policies regarding contract termination at death and refunds, and to include in the admission agreement the conditions under which those refunds will be issued. The bill would exempt from these provisions fees charged by a continuing care equity project or to amounts deducted from entrance fee refunds or repayment, as defined.end insert

By creating a new crime, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 1569.652 is added to the Health and
2Safety Code
, to read:

3

1569.652.  

begin insert(a)end insertbegin insertend insert A residential care facility for the elderly shall
4not require advance notice for terminating an admission agreement
5upon the death of a resident. A residential care facility for the
6elderly shall not assess any fees once all personal property
7belonging to the deceased resident is removed from the living unit.

begin insert

8(b) Upon the death of a resident, a licensee shall not impede
9the removal of the resident’s personal belongings from the facility
10during reasonable hours by an individual or individuals authorized
11by the resident or the resident’s responsible person, as identified
12in the admission agreement or addendum, or by a representative
13of the resident’s estate.

end insert
begin insert

14(c) A refund of any fees paid in advance covering the time after
15the belongings have been removed from the facility shall be issued
16to the individual, individuals, or entity contractually responsible
17for the fees or, if the deceased resident paid the fees, to the
18resident’s estate, within 15 days after those belongings are
19removed.

end insert
begin insert

20(d) If fees are assessed while a resident’s belongings remain in
21a unit after the resident is deceased, a licensee shall, within three
P3    1days of becoming aware of the resident’s death, provide to the
2resident’s responsible person written notice of the facility’s policies
3regarding contract termination upon death and refunds.

end insert
begin insert

4(e) This section shall not apply to fees charged by a continuing
5care equity project as defined in paragraph (6) of subdivision (c)
6of Section 1771 or to amounts deducted from entrance fee refunds
7or repayments described in paragraph (2) of subdivision (r) of
8Section 1771.

end insert
9begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 1569.884 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
10amended to read:end insert

11

1569.884.  

The admission agreement shall include all of the
12following:

13(a) A comprehensive description of any items and services
14provided under a single fee, such as a monthly fee for room, board,
15and other items and services.

16(b) A comprehensive description of, and the fee schedule for,
17all items and services not included in a single fee. In addition, the
18agreement shall indicate that the resident shall receive a monthly
19statement itemizing all separate charges incurred by the resident.

20(c) A facility may assess a separate charge for an item or service
21only if that separate charge is authorized by the admission
22agreement. If additional services are available through the facility
23to be purchased by the resident that were not available at the time
24the admission agreement was signed, a list of these services and
25charges shall be provided to the resident or the resident’s
26representative. A statement acknowledging the acceptance or
27refusal to purchase the additional services shall be signed and dated
28by the resident or the resident’s representative and attached to the
29admission agreement.

30(d) An explanation of the use of third-party services within the
31facility that are related to the resident’s service plan, including,
32but not limited to, ancillary, health, and medical services, how
33they may be arranged, accessed, and monitored, any restrictions
34on third-party services, and who is financially responsible for the
35third-party services.

36(e) A comprehensive description of billing and payment policies
37and procedures.

38(f) The conditions under which rates may be increased pursuant
39to Section 1569.655.

P4    1(g) The facility’s policy concerning family visits and other
2communication with residents, pursuant to Section 1569.313.

3(h) The facility’s policy concerning refundsbegin insert, including the
4conditions under which a refund for advanced monthly fees will
5be returned in the event of a resident’s death, pursuant to Section
61569.652end insert
.

7(i) Conditions under which the agreement may be terminated.

8(j) An explanation of the facility’s responsibility to prepare a
9relocation evaluation, for each resident and a closure plan and to
10provide notice in the case of an eviction pursuant to Section
111569.682.

12

begin deleteSEC. 2.end delete
13begin insertSEC. 3.end insert  

No reimbursement is required by this act pursuant to
14Section 6 of Article XIII B of the California Constitution because
15the only costs that may be incurred by a local agency or school
16district will be incurred because this act creates a new crime or
17infraction, eliminates a crime or infraction, or changes the penalty
18for a crime or infraction, within the meaning of Section 17556 of
19the Government Code, or changes the definition of a crime within
20the meaning of Section 6 of Article XIII B of the California
21Constitution.



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